Merkel: Europe's "toughest hour since World War II"

German Chancellor Angela Merkel offered a grave assessment of Europe's economic health and underscored her determination to keep the Euro from failing. Deborah Gembara reports.

GERMANY-MERKEL/DEBT CRISIS -

German Chancellor Angela Merkel says she is determined to keep the Euro from failing.

With new leaders in Italy and Greece crucial to Europe's debt woes, Merkel did not mince words over the crisis in an address to her party.

German Chancellor, Angela Merrkel saying

"Today, Europe is in one of its toughest hours, maybe the toughest hour since World War II. It must be clear to us that we must not be discouraged by that. In 2008, we managed to overcome the financial crisis with the motto that Germany would come out stronger from this crisis than we entered it. Now we must succeed in getting Europe out of this crisis stronger than when it entered it."

While financial markets in Europe on Monday appeared briefly encouraged by Europe's efforts to take decisive action to breathe new life into their sick economies, Merkel's comments did little to ease fears about the recovery of the 17-state currency zone.